Investors’ Interest Grows as Malaysia Approves RM193.7 Billion in Investments

Approved investments hold strong as Malaysia approves RM193.7 billion in investments

Malaysia is showing substantial improvement in investments, according to the Malaysian Investment Development Authority (MIDA). Year-on-year data for the period of January to September 2022 indicates a 2.5% increase from RM188.9 billion in 2021. As Malaysia approves RM193.7 billion in investments, additional job opportunities are also emerging. Primary, manufacturing, and services are the key investment sectors, with 2,786 projects creating 98,414 job prospects.

The Ministry of International Trade and Industry (MITI) attributes Malaysia’s success in attracting robust investments to several factors. These include its unique international positioning, resilient supply chain logistics, diverse and multi-skilled talent pool, and economical cost of living.

Investment and sustainable growth also continue to be consistent due to the country’s innovation capabilities and technological infrastructure. The statement from MITI credits the combination of these factors as creating an ideal opportunity for investments and entrepreneurs. It positions Malaysia as a popular investment destination in Asia and one of the top gateways in the ASEAN region.

Strong FDIs

An upward trend in foreign direct investments (FDIs) is one of the key contributing factors for the increase in investments. Statistics show that China (RM49.2 billion) and the United States (RM16.9 billion) are top investors. Singapore, Netherlands, and Germany are also significant players, with RM8.7 billion, RM16.5 billion and RM9.2 billion in investments, respectively.

FDIs are at RM130.7 billion (67.5%), a 15% year-on-year increase, while DDIs (domestic direct investments) are at RM63 billion (32.5%). As Malaysia approves RM193.7 billion in investments, several states continue to show substantial approved investments. The top three – Johor, Federal Territory of Kuala Lumpur, and Selangor – record RM63.9 billion, RM26.1 billion, and RM25.7 billion, respectively. RM17.6 billion and RM12.1 billion come from the states of Sarawak and Kedah.

MIDA states that a significant industry driving the country’s economic recovery is the services sector. It totals RM113.3 billion or 58.5% of the overall approved investments, indicating a rise of 60.9% from the previous year. The manufacturing and primary sectors follow with totals of RM64.9 billion (33.5%) and RM15.5 billion (8%), respectively.

Key Economic Centre

Malaysia is well-poised for long-term sustainable growth, which will enable the country to position itself as a key economic centre. The Government is focusing on strategies that will spur the manufacturing and services sectors and the digital economy while driving long-term growth. As Malaysia approves RM193.7 billion in investments, prospects continue to be robust for serious investors and entrepreneurs.

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